Defining Indemnity In The Context Of Actual Cash Value Calculations


4) Actual amount of discount varies based on the service fees charged. I should therefore like to take this opportunity to ask the Commission to present an annual report on the actual amount of State aid granted by each Member State. It is an easy solution for the Union but, in effect, it reduces the actual amount of aid provided to developing countries. The actual amount you owe can stay the same or even fall a bit and your debt-service ratio will still deteriorate if rates move up. Make an ostensibly modest or self-deprecating statement with the actual intention of drawing attention to something of which one is proud. Actual Amountmeans the quantity of the dutiable alcoholic liquor of any description in the denatured alcohol in your possession. The grower is, therefore, concerned with the actual amount which he receives.10) These are estimates only; actual amounts of data used may vary significantly. The actual amounts of pistachios included in each diet were 1.5 ounces and 3 ounces for the 10 and 20 percent diets, respectively. And so the percentage is lower, the actual amount is higher, and so the goal is to reduce both.22) Values may not reflect the actual amount computed by the direct loan servicing center. 16) Condition did not affect the actual amount donated when participants chose to donate. 12) However, the actual amount of carbon dioxide varies with the seasons. 9) No information was provided as to the actual amount of silver ingested. 8) The actual amount of wood logged has lagged behind the allowable cut levels. 7) The actual amount of lives gained depends on player’s performance.

Contextual Examples Of “actual Amount” In German

The actual amount paid, however, through no fault of the companies, could still be relatively high. Surely, it is not the actual amount of research and theory development engendered by problem-focused research, which is considerable. A proportion of each leaf was then torn off and the leaves scanned and measured again, from which the actual amount missing was calculated. Following is a discussion of the calculation of ACV in certain loss scenarios. Value in use to the insured, where the value to the insured or its business is different than the result from the above measurements. Personal property is a class of property that can include any type of asset other than real estate. The offers that appear in this table are from partnerships from which Investopedia receives compensation.A few insurance companies still offer a guaranteed replacement cost policy that pays whatever it costs to rebuild your home as it was before the disaster. But neither a guaranteed nor an extended replacement cost policy will pay for a house that’s better than the one that was destroyed.Typically, the scope of loss under a RCV policy assumes that replacement of damaged building materials, which existed at the time of loss, will be replaced with the same material, assuming that the material is available. Property insurance policyholders will usually prefer payment based on the replacement cost of damaged or stolen property because it compensates the policyholder for the actual cost of replacing property. In recent years, an issue has arisen regarding whether an insurer can properly depreciate labor when calculating actual cash value. Several putative class actions have been filed, and courts have come down on both sides of the issue. In most instances, it appears that courts will allow depreciation of labor to be considered, but depending on the jurisdiction and policy language, a court may not allow it. In such cases, although the cost to repair the building may need to be determined to establish a maximum payment under the RCV provision, the starting point for ACV determination will be simply to look at the market value of the entire property. The Broad Evidence Rule, in which all factors having a bearing on indemnity can be considered but are not given equal weight.While it is the minority approach in terms of judicial application, the method most commonly used by insurers and adjusters in determining ACV for partial, and many total, losses is replacement cost minus depreciation. Depreciation is generally “defined as a ‘decline in an asset’s value because of use, wear, obsolescence, or age.’” Typically, a percentage deduction is taken from replacement cost to account for physical deterioration.

Actual Amount Definition

24) The actual amount you pay depends on the type of account you have. 19) A major unknown regarding derivatives is the actual amount of cash behind a transaction. 18) In some instances, the actual amount of dissolution can be calculated. 14) After coming back home i calculated and actual amount shown on the. 2) Instead families repay the actual amount of improperly obtained benefits.

  • The market value determination of the property prior to the loss would consider the cost to cure the defects .
  • If a taxpayer has a car, but no car payment, only the operating costs portion of the transportation standard is used to figure the allowable transportation expense.
  • Census Bureau, American Community Survey and BLS data, and are provided by state down to the county level.
  • Fundamental to the concept of insurance is the principle of indemnity, the idea that a policyholder should be made whole after a loss.
  • A) Under an open policy, the measure of indemnity in fire insurance is the expense to the insured of replacing the thing lost or injured in its condition at the time of the injury, the expense being computed as of the time of the commencement of the fire.

Translations into more languages in the Italian-English dictionary. We have therefore thought it most sensible not to state an actual amount for what the statute of members might cost in 2005. Translations into more languages in the English-Vietnamese dictionary. His lawsuit seeks an award of “over $20,000” from the team, but the actual amount he is seeking is likely much greater. Always demand an official receipt reflecting the actual amount paid.

How To Use “actual Amounts” In A Sentence

And This is a fast way of learning the meaning of actual amount with example sentences. 37) However, the amounts are budgeted and may not always be the actual amount being paid. 31) The amount of the claimed expenses should be the anticipated actual amount , if known. 26) Hawley said work was still ongoing to determine the actual amount of money taken. defining indemnity in the context of actual cash value calculations Check with local mobile home dealers to find out what similar homes sell for now. For example, assume that lightning strikes an air conditioning compressor that is 20 years old and is nearing the end of its useful life. A duplicate compressor is unlikely to be available, and the replacement would involve installation of a modern, code compliant, more energy efficient equivalent model. There is little legitimate argument that the replacement of a modern functional equivalent unit in this example results in betterment.

National Standards: Food, Clothing And Other Items

The results of the study of skincare products revealed that in comparison with the West, large amounts of lotions and emulsions were applied, whereas lower amounts of cream and essence were applied in Japan. In the study of sunscreen products, actual measured values during outdoor leisure use were obtained, and these were lower than the values from the West. The study of the use of facial mask packs yielded data on typical Japanese sheet-type impregnated masks and revealed that high amounts were applied.

Recoverable Depreciation: How It Works

Incurable depreciation is typically the effect of age and deterioration on building components that are not typically replaced during the life of the structure. The calculation of actual cash value is both an individual loss and jurisdiction specific exercise, requiring knowledge of not only the legal limitations in certain states, but also a firm grasp on the elements which result in depreciation and indemnity. The Appendix provides a state-by-state review of valuation rules that affect the calculation of ACV. Partial losses often involve replacement of old worn out materials with equivalent materials which are new, resulting in longer useful life, and potentially increased value. This paper will review the various methods by which Replacement Cost Value and ACV losses are calculated, discuss issues that arise in application to certain types of losses, and provide a state-by-state review of relevant case law effecting the calculation of ACV. For instance, if a camera is stolen, a replacement cost policy will reimburse you the full cost of replacing it with a new camera of like kind.The present results should be extremely useful in safety assessments of newly developed cosmetic products and to regulatory authorities in Japan and around the world. Property insurance policyholders usually would instead be reimbursed for the replacement cost rather than actual cash value, as these amounts frequently differ.Actual cash value is used in valuing insured property in the property and casualty insurance industry. The operating costs include maintenance, repairs, insurance, fuel, registrations, licenses, inspections, parking and tolls.

Actual Amount

The efforts towards easing transactions through formal channels may result in improvement of the financial sectors and the useful personal finance behavior in the remittance receiving countries which would further the goal of economic development of these countries. For example, does replacement of a pump or motor on a 30-year-old home heating boiler result in betterment? Actual cash value is not the same as the replacement cost value of an item. The ownership costs provide maximum allowances for the lease or purchase of up to two automobiles if allowed as a necessary expense. The out-of-pocket health care standard amount is allowed in addition to the amount taxpayers pay for health insurance. Out-of-Pocket Health Care standards have been established for out-of-pocket health care expenses including medical services, prescription drugs, and medical supplies (e.g. eyeglasses, contact lenses, etc.).A) Under an open policy, the measure of indemnity in fire insurance is the expense to the insured of replacing the thing lost or injured in its condition at the time of the injury, the expense being computed as of the time of the commencement of the fire. Calculate the percentage of depreciation for the item and deduct it from the RCV loss value. An agreed amount clause is a property insurance provision where the insurer agrees to waive the coinsurance requirement for the insured. Property insurance provides financial reimbursement to the owner or renter of a structure and its contents in the event of damage or theft. You can practice spelling and usage of the word by getting 10 examples of sentences with actual amount. A thorough investigation can reveal the actual amounts involved, the complaint had submitted in court. The actual amounts of drugs and cash exchanged are believed to far exceed the amounts observed, police said.Determine whether the scope of loss and cost to repair or replace results in betterment. Actual total loss is a loss that occurs when an insured property is totally destroyed, lost or damaged to such an extent that it cannot be recovered. In a “cost approach” determination used by a real estate appraiser, in which the depreciated replacement cost of the improvements is added to land value.

Six Year Rule For Repayment Of Tax Liability

The market value determination of the property prior to the loss would consider the cost to cure the defects . Any prudent purchaser of real estate would consider necessary replacements or deferred maintenance that would be required in the determination of how much to pay for a property. Those costs, when incurred, will include not only the material necessary to make repairs, but also labor, equipment, delivery costs, contractor markup and any other costs necessary to effectuate the replacement. Therefore, by limiting the extent to which ACV is fairly calculated by eliminating the depreciation of labor, California, a market value state, has arguably created a system where betterment will result if an insured experiences a partial loss. In sum, in California a partial loss calculation does not necessarily bear a direct relationship to the insured’s economic loss and the insured may be more than indemnified for his loss. In a partial loss, in most cases, the diminution of value pre-loss versus post-loss can typically be determined by the cost to repair or replace the building components which are damaged, less a deduction for depreciation.If a taxpayer has a car payment, the allowable ownership cost added to the allowable operating cost equals the allowable transportation expense. If a taxpayer has a car, but no car payment, only the operating costs portion of the transportation standard is used to figure the allowable transportation expense. In both of these cases, the taxpayer is allowed the amount actually spent, or the standard, whichever is less.


Allowable living expenses include those expenses that meet the necessary expense test. The necessary expense test is defined as expenses that are necessary to provide for a taxpayer’s (and his or her family’s) health and welfare and/or production of income. If your home is damaged beyond repair, a typical homeowners policy will pay to replace it up to the limits of the policy. When the value of your insurance policy has kept up with increases in local building costs, a similar dwelling can generally be rebuilt for an amount that is within the policy limits. The Marshall Value Service, a well-known publication used to determine replacement cost of structures uses curves to recommend depreciation in its publication. Fair Market Value, in which the pre-loss and post loss market value of the structure is determined, and the difference is considered the ACV.